How can a fintech app go international?

Corporate Strategy gotomarket growth strategy launch market entry
New answer on Jul 17, 2020
2 Answers
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PK asked on Jul 16, 2020
Director of Product at PayPal. Based in SF. Worked at Twitter, Yelp, Salesforce, Houzz in the past.

Coinbase is thinking about expanding internationally, think about the trade-offs this sort of decision would present?

How would you structure the approach and position it to leadership?

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Ian
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updated an answer on Jul 17, 2020
BCG | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

Hi PK,

Very interesting question. Somewhat classic market entry :)

Clarifying questions

Where internationally?

What is coinbase's objective here?

How would they grow (organic or acquire)?

Benefits

  • Economies of scale - in IT/tech scale is everything
  • The larger the platform the more power...self-fulfilling cycle with usebase in an online marketplace
  • Reduced fixed/SG&A costs per customer/unit sold
  • Larger platform, better offering to customers
  • Move first, before other platforms (need to scale or will lose in the long-run)

Costs

  • Regulation - incredibly complicated patchwork regulation across countries
  • Scaled IT infrastructure
  • Tax laws
  • Much higher risk (hacks, etc.)

Execution

(Really dependent on clarifying questions here)

  • If we do want to do this, how will we?
  • Acquire vs grow organic changes the entire decision
  • Where do we enter (target similar countries/cultures/languages first)
  • How to handle currency exchanges
  • How will competition respond? Will this become an arms race?

(edited)

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Clara
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replied on Jul 16, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

First, I would recommend you to edit the post and draft your solution. This way it´s going to be much more enriching to you, since we will comment and give feedback after :)

Secondly, to help you with that: this is the classical market penetration case. You can find plenty of posts by tiping those key words in this very same q&a. At the end, those cases are always super similar.

Hope it helps!

Cheers,

Clara

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Ian

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